This is the question I get asked every single day
How much should I spend on my Facebook Ads?
In this quick video I’ll give you a long and short answer to that. Stick with me to the end, and I’ll give you the sound bite you are waiting for.
My answer, and I know you are not going to want to hear this, is “it depends”
It depends on:
What is your objective?
- Listing building?
- Get people to a webinar?
- Send people to your blog?
- Course sign up?
- Attend an event?
- Drive people into your retail store?
For any and all these objective you need to know your conversion numbers.
- How many people will click on your ad (that’s your click thru rate)
- Once that person gets to the landing page how many take the action you are asking them to take? (Landing page conversion rate)
- Once they opt in, now many will buy what you are offering?
The first campaign that you are doing should be establishing all of these metrics. You know the price of your offer. Now you can back into what you can afford to spend to get a new customer.
Ok ok, but how much should I spend?
Facebook Advertising is not about throwing ads against the wall and hoping for success.
It’s a test and iterate process.
Especially if you want to grow your business – and I’m assuming that’s why you are here.
Think of all the things you can and should be testing.
The more variables you test, the more expensive (but educational) your testing will be.
So let’s lay out a simple strategy.
Test for one week – 7 days. – (It takes Facebook 48 hours for the algorithm to do its job)
Test 5 audiences
Test 2 versions of an ad.
This is already 10 ad-sets, at $5 per day for 7 days. That’s $350.
I rarely test at $5 – it’s too slow and there is not enough data to be reliable. The more data you gather and the faster, the faster can make improvements.
So that initial campaign could be $700.
I usually suggest we start with a budget of $500 at least to establish those important conversion metrics.
If you don’t already know your numbers, this testing period will tell you what your business model can support.
- How much can you pay for a new lead?
- What is your typical conversion rate from lead to paying customer?
- And the most important figure – How much can you pay for a new customer? This is the golden ticket in Paid advertising.
You want to test with a plan, and prepare for the rollout. –
You are NOT throwing a few ads out and watching for the magic. It’s a test and iterate process.
The testing phase it for the purpose of learning as much as you can to prepare you for the rollout process.
What a good strategy should be doing for you
- Building your email list with qualified prospects at the minimal cost per lead you can afford
- Knowing that your FB Ads campaigns are going to get you 3x 4x 5x your ad budget or more. If you spend $100 (on your ads) to ultimately make $300, $400 or $500 wouldn’t you do that all day long? If you can 10x your ad budget back, wouldn’t that be the golden ticket to ongoing, reliable, predictable revenue…who doesn’t what that?
So. Can you spend $5 per day on FB ads? Yes, If you want to grow at a snails pace. I don’t. And none of my clients do.
And that magic number “how much do I have to spend”To be in growth mode and strategic, I would say $350-$700 for your first campaign.
So, if you ARE at that stage of your business and are looking for exponential growth, I’d love to help you.
No pressure, I promise, just a conversation.